"Starbucks has faced mounting challenges after decades as a seemingly untouchable coffee giant, in part due to its heavy focus on transactional growth at the expense of loyal customers who helped make it an iconic brand. "In trying to scale faster, Starbucks has drifted away from the emotional core that built its global following," Amazon Business Analyst Saswat Sidhant Prusty told Coffee Intelligence."
"External pressures, including economic uncertainty, rising operational costs, a slowdown in consumer spending due to inflation, and ever-evolving industry trends, have also impacted the company's overall financial performance, mirroring the struggles faced by the broader foodservice sector. After learning from its missteps, Starbucks has begun implementing significant changes across its business through the "Back to Starbucks" turnaround plan, aiming to rectify its mistakes. This time, however, the company is making a surprising move by expanding into an unexpected category that has nothing to do with coffee."
"Starbucks enters the fashion and beauty business. Starbucks ( SBUX) has hired Neiv Toledano as its new Head of Fashion and Beauty for the Brand Activation team. While the company has collaborated with fashion and beauty partners in the past, this newly created role is the first of its kind, since it's dedicated solely to the development of strategy and execution in the space. Toledano brings her experience working with major consumer brands across social media and marketing. She previously served as a senior manager for brand marketing at E.l.f. Beauty and as a social media manager for Chipotle, according to her LinkedIn profile."
Starbucks experienced mounting challenges after decades of rapid expansion as transactional growth eroded loyalty and the brand's emotional core. External pressures such as economic uncertainty, rising operational costs, inflation-driven consumer slowdown, and shifting industry trends further weakened financial performance, reflecting broader foodservice struggles. The company initiated a "Back to Starbucks" turnaround plan to address missteps and implement changes across the business. As part of the shift, Starbucks is expanding beyond coffee into fashion and beauty, hiring Neiv Toledano to lead fashion and beauty strategy and execution and signaling deeper investment in limited-time collaborations.
Read at Miami Herald
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